@Upen Patel :  So, if I am reading into this correctly, there is no real benefit to being a co-borrower as opposed to a guarantor on the LLC loan. 

So essentially my conventional mortgage loan would pay them back, correct?

Most investors do not treat it as such and allow tenants to regularly violate basic terms of the lease.When these Landlords share the problems they are having, more experienced Landlords may seem harsh because we are attempting to correct a major flaw in the way they operate their business.

So if I could get the seller down in price a bit, this could be a solid option, based on MY criteria... and ASSUMING my rent and expense estimates are correct.

I'm sure someone will correct me if they know of whole neighborhoods that would fit the bill. 

Hopefully our paths may cross someday soon!

Do your research before you commit to this path, as it can get involved. 

If I am reading it correctly this would reduce taxable income significantly but still not to the effect of a step up basis in an inheritance scenario.     

I am using TurboTax.Do I:- refer to the original depreciation schedule and pick up at the level of depreciation that correctly accounts for the years it was a personal residence (even though I didn't claim depreciation in those years)?

However done correctly with little to no debt great. to me makes perfect sense as the investment.